Changes to debtor rules on table for legislation

Around 400 insolvency cases are thought to be on hold over interpretation of the lawGETTY IMAGES

Any change to the rules that would enable debtors to challenge directly a bank’s rejection of their loan restructuring will be made as an amendment to personal insolvency legislation, the finance minister has said.

On February 5, Ms Justice Marie Baker ruled that reviews of a personal insolvency arrangement (PIA) are not exclusively a matter for a debtor’s personal insolvency practitioner (PIP) and she said the law envisaged a role for the debtor in the process.

It is understood that about 400 insolvency cases are on hold because the interpretation of the legislation before last month’s ruling was that only a PIP could appeal a decision by a bank to veto a PIA.

Legal sources had suggested that Paschal Donohoe, the finance minister, could include…